by Gus Lubin and Andrew Shen
Everyone has been warning this week about imminent bankruptcy forAmerican Airlines and Eastman Kodakbankruptcy.
But they aren’t the only companies on the brink.
The latest watch list from GovernanceMetrics International names over 100 companies with an elevated financial distress probability and which have experienced high risk events that increase the likelihood of bankruptcy.
We picked out the biggest US-listed names.
#12 Venoco, Inc. (VQ)
Financial distress probability:3.04%
Accounting and governance risk:Aggressive
Market cap: $659,790,000
Venoco shares got a boost at the end of August when CEO Timothy Marquez offered to buy out the company. Days later, however, an investor sued to block the buyout, claiming “Marquez strategically timed the proposed transaction during a period of economic turmoil in which the terms of the proposed transaction could be superficially viewed in a positive light”.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#11 SunPower Corporation (SPWRA)
Financial distress probability:3.20%
Accounting and governance risk:Aggressive
Market cap: $652,210,000
4-week price drop: -24.45%
It ain’t Solyndra, but SunPower has been getting killed with the rest of the U.S. industry. SunPower sold its 250MW California Valley Solar Ranch to NRG Energy this year. According to Reuters, it also just signed a new $275 million revolving credit facility as well as a new $200 million letter of credit facility.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#9 The Shaw Group Inc. (SHAW)
Financial distress probability:3.81%
Accounting and governance risk:Aggressive
Market cap: $1,723,000,000
The energy and construction conglomerate is trading at its 52-week low. Shaw is selling its 20% stake in Westinghouse to Toshiba Corporation, which has been seen as a move away from nuclear.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#8 CoreLogic, Inc. (CLGX)
Financial distress probability:4.44%
Accounting and governance risk:Very Aggressive
Market cap: $1,287,590,000
CoreLogic has put itself up for sale. According to Reuters, at least seven different firms have expressed interest in acquiring the data firm. It has hired Greenhill to help with the sale as a whole, or as pieces.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#7 DineEquity, Inc. (DIN)
Financial distress probability:5.97%
Accounting and governance risk:Aggressive
Market cap: $774,990,000
DineEquity’s IHOP stores recentlycame under investigation for money laundering and undocumented workers. Earlier this year, the conglomerate sold a number of its Applebee’s restaurants after losing sales during the recession.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#6 Quad/Graphics, Inc. (QUAD)
Financial distress probability:6.25%
Accounting and governance risk:Aggressive
Market cap: $996,400,000
Quad/Graphics has been on a buying spree, picking up competitor World Color Press out of bankruptcy and buying HGI Company in 2010. Since then profit margins have been under pressure and debt is high, according to The Street.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#5 Barnes & Noble, Inc. (BKS)
Financial distress probability:6.32%
Accounting and governance risk:Aggressive
Market cap: $716,220,000
4-week price drop: -25.13%
Borders went bankrupt earlier this year. Barnes & Noble’s business model is only slightly more viable. It faces new pressure from Amazon after last week’s announcement of the new Kindle Fire and cheaper Kindles.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#4 Community Health Systems (CYH)
Financial distress probability:6.88%
Accounting and governance risk:Very Aggressive
Market cap: $1,752,400,000
Poorer patients and lower Medicare reimbursements have hurt the hospital sector. Community Health Systems has suffered particularly on deteriorating net income and poor profit margins, according to The Street. The company recently soldtwo of its hospitals in Oklahoma.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#3 Dynegy Inc. (DYN)
Financial distress probability:10.61%
Accounting and governance risk:Aggressive
Market cap: $680,740,000
Dynegy was recently sued by bondholders who believed they were shortchanged by Dynegy’s restructuring. The restructuring was done to try and help Dynegy avoid bankruptcy.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#2 Standard Pacific Corp. (SPF)
Financial distress probability:13.35%
Accounting and governance risk:Very Aggressive
Market cap: $493,090,000
Standard Pacific CEO Ken Campbellwill step down next year after attempting an aggressive turnaround. The California luxury home builder bought a bunch of land in 2009 and made a number of layoffs and cost cuts. It has been losing money since 2010, as the housing market double dips.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
#1 Clearwire Corporation (CLWR)
Financial distress probability:14.93%
Accounting and governance risk:Aggressive
Market cap: $2,240,700,000
Clearwire’s WiMax 4G network — used by Sprint — is getting edged out by Verizon and AT&T’s LTE 4G networks. The company will be even more screwed if the AT&T/T-Mobile deal goes through. Furthermore, Clearwire shares declined on reports that Sprint will lose money on the iPhone deal, which makes Sprint less likely to by its struggling part.
Data provided by GMI. Accounting and Governance Risk refers corporate integrity and accounting practices.
Meanwhile companies that tap into emerging markets are booming
See the 12 consumer companies that will dominate the globe >
The Next 11 Big Companies That Could Go Bankrupt
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